Despite being the most impressive technical specimen on the market, with unique Blu-Ray playback features and custom-built IBM
The PS3 was always meant to last for a very long time. It took about five years for Sony to start making a profit from the PlayStation 2, and the PS3 was supposed to follow the same path as a media-center powerhouse with gaming roots. Three years into the system's life cycle, Sony's gaming division is still bleeding cash every quarter. And now the industry itself is starting to lose patience with Sony.
"Games generate a better return on invested capital on the Xbox than on the PlayStation," says Activision Blizzard
Ouch. Kotick is wielding a big stick, because Activision has leapfrogged Electronic Arts
Reports of new upgrades to the PS3 ecosystem are coming in, but they seem to indicate the wrong kind of changes. The systems are getting bigger and stronger, but not necessarily cheaper. Sony couldn't have predicted the global economic downturn any more than you, I, or the competition -- but the company sure could have handled it better.
Unless the PS3 finds some way to entice more consumers to pay up for its classy but expensive wares, Kotick might take Guitar Hero, Tony Hawk, Call Of Duty, and a host of other crowd-pleasing franchises -- and go home. And if the biggest producer can't afford to make PS3 titles, the smaller players could soon follow suit. By the time Take-Two Interactive
The time to act is now, Sony. Give me cheaper systems or give me death. For your sake, I hope that the rumors of a less expensive PS3 Slim model are correct.
Game on, Fool:
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Take-Two Interactive Software is a Motley Fool Rule Breakers recommendation. Activision Blizzard, Electronic Arts, and Nintendo are Motley Fool Stock Advisor selections. Microsoft is a Motley Fool Inside Value recommendation. Nintendo is a Motley Fool Global Gains pick. Try any of our Foolish newsletter services free for 30 days.
Fool contributor Anders Bylund owns shares in Take-Two, but he holds no other position in any of the companies discussed here. OK, he's also addicted to Guitar Hero and its ilk. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.